Buchanan manufacturing uses an activity-based cost system. Information relating to the company's only two products (Model A and Model D) is below. Followed by plan costs for the company's three cost pools. What is Setups cost assigned to Model A?

Model A Model D Units produced 20000 40000 Machine hours 8000 10000 Direct labor hours 14000 16000 Engineering (hours) 1000 1400 Setups 40 60

Plan cost: Engineering $96000 Setups 200000 Machine-related 288000

1. 72000

2. 100000

3. 120000

4. 80000